Reading council 'must cut £15 million'

Councillor Jo Lovelock says Reading must make savings of more the £15 million

The Government line on council funding for next year is that it represents a cut of just 1.7 per cent in “spending power”.

But Reading council leader Councillor Jo Lovelock has painted a much bleaker picture by looking at the actual reduction in overall grants following the finance settlement announced on Wednesday.

“We are looking at a 10 per cent reduction in grants which equates to £7 million,” she said.

“But when you add inflation and growth pressures such as the increasing number of children who need council care, we are going to have to make savings of more than £15 million.

“And it’s likely to be a similar figure for the next year and the year after.”

Cllr Lovelock said it was disappointing to see the Government continuing its disproportionate reduction for urban areas such as Reading and Slough.

“Wokingham has only lost about £2.7 million but we have to look at the actual needs of our population which puts greater pressures on our finances as we have a higher number of people needing help and support than the leafy suburbs,” she said.

The council has been bracing itself for this unwelcome Christmas present and has been working on ways to cope with the grant reduction.

Cllr Lovelock said: “We will be looking to protect public services. We can only put up council tax by two per cent. This, however, would only raise £680,000 so we have to ask ourselves whether this hit on already very tight household budgets across the town is worth it.”

When pushed on what cuts would be made Cllr Lovelock said that no decisions had been made but the council would have to look at a reduction in staffing across all directorates. “We will be seeking to avoid compulsory redundancies,” she said. “This is not anything any of us wants to do.

“We are trying not to close anything down but we may be able to move services in together to save money.”

Borough finance bosses will now be fine-tuning ideas for the budget-setting meeting of the council on February 26.